[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 659 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 659
To amend chapter 38 of title 31, United States Code, relating to civil
remedies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 6, 2023
Mr. Grassley (for himself and Mr. Durbin) introduced the following
bill; which was read twice and referred to the Committee on the
Judiciary
_______________________________________________________________________
A BILL
To amend chapter 38 of title 31, United States Code, relating to civil
remedies, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Administrative False Claims Act of
2023''.
SEC. 2. ADMINISTRATIVE FALSE CLAIMS.
(a) Change in Short Title.--
(1) In general.--Subtitle B of title VI of the Omnibus
Budget Reconciliation Act of 1986 (Public Law 99-509; 100 Stat.
1934) is amended--
(A) in the subtitle heading, by striking ``Program
Fraud Civil Remedies'' and inserting ``Administrative
False Claims''; and
(B) in section 6101 (31 U.S.C. 3801 note), by
striking ``Program Fraud Civil Remedies Act of 1986''
and inserting ``Administrative False Claims Act''.
(2) References.--Any reference to the Program Fraud Civil
Remedies Act of 1986 in any provision of law, regulation, map,
document, record, or other paper of the United States shall be
deemed a reference to the Administrative False Claims Act.
(b) Reverse False Claims.--Chapter 38 of title 31, United States
Code, is amended--
(1) in section 3801(a)(3), by amending subparagraph (C) to
read as follows:
``(C) made to an authority which has the effect of
concealing or improperly avoiding or decreasing an
obligation to pay or transmit property, services, or
money to the authority,''; and
(2) in section 3802(a)(3)--
(A) by striking ``An assessment'' and inserting
``(A) Except as provided in subparagraph (B), an
assessment''; and
(B) by adding at the end the following:
``(B) In the case of a claim described in section
3801(a)(3)(C), an assessment shall not be made under the second
sentence of paragraph (1) in an amount that is more than double
the value of the property, services, or money that was
wrongfully withheld from the authority.''.
(c) Increasing Dollar Amount of Claims.--Section 3803(c) of title
31, United States Code, is amended--
(1) in paragraph (1), by striking ``$150,000'' each place
that term appears and inserting ``$1,000,000''; and
(2) by adding at the end the following:
``(3) Adjustment for Inflation.--The maximum amount in paragraph
(1) shall be adjusted for inflation in the same manner and to the same
extent as civil monetary penalties under the Federal Civil Penalties
Inflation Adjustment Act (28 U.S.C. 2461 note).''.
(d) Recovery of Costs.--Section 3806(g)(1) of title 31, United
States Code, is amended to read as follows:
``(1)(A) Except as provided in paragraph (2)--
``(i) any amount collected under this chapter shall be
credited first to reimburse the authority or other Federal
entity that expended costs in support of the investigation or
prosecution of the action, including any court or hearing
costs; and
``(ii) amounts reimbursed under clause (i) shall--
``(I) be deposited in--
``(aa) the appropriations account of the
authority or other Federal entity from which
the costs described in subparagraph (A) were
obligated;
``(bb) a similar appropriations account of
the authority or other Federal entity; or
``(cc) if the authority or other Federal
entity expended nonappropriated funds, another
appropriate account; and
``(II) remain available until expended.
``(B) Any amount remaining after reimbursements described in
subparagraph (A) shall be deposited as miscellaneous receipts in the
Treasury of the United States.''.
(e) Semiannual Reporting.--Section 405(c) of title 5, United States
Code, is amended--
(1) in paragraph (4), by striking ``and'' at the end;
(2) by redesignating paragraph (5) as paragraph (6); and
(3) by inserting after paragraph (4) the following:
``(5) information relating to cases under chapter 38 of
title 31, including--
``(A) the number of reports submitted by
investigating officials to reviewing officials under
section 3803(a)(1) of such title;
``(B) actions taken in response to reports
described in subparagraph (A), which shall include
statistical tables showing--
``(i) pending cases;
``(ii) resolved cases;
``(iii) the average length of time to
resolve each case;
``(iv) the number of final agency decisions
that were appealed to a district court of the
United States or a higher court; and
``(v) if the total number of cases in a
report is greater than 2--
``(I) the number of cases that were
settled; and
``(II) the total penalty or
assessment amount recovered in each
case, including through a settlement or
compromise; and
``(C) instances in which the reviewing official
declined to proceed on a case reported by an
investigating official; and''.
(f) Increasing Efficiency of DOJ Processing.--Section 3803(j) of
title 31, United States Code, is amended--
(1) by inserting ``(1)'' before ``The reviewing''; and
(2) by adding at the end the following:
``(2) A reviewing official shall notify the Attorney General in
writing not later than 30 days before entering into any agreement to
compromise or settle allegations of liability under section 3802 and
before the date on which the reviewing official is permitted to refer
allegations of liability to a presiding officer under subsection
(b).''.
(g) Revision of Definition of Hearing Officials.--
(1) In general.--Chapter 38 of title 31, United States
Code, is amended--
(A) in section 3801(a)(7)--
(i) in subparagraph (A), by striking ``or''
at the end;
(ii) in subparagraph (B)(vii), by adding
``or'' at the end; and
(iii) by adding at the end the following:
``(C) a member of the board of contract appeals
pursuant to section 7105 of title 41, if the authority
does not employ an available presiding officer under
subparagraph (A);''; and
(B) in section 3803(d)(2)--
(i) in subparagraph (A), by striking
``and'' at the end;
(ii) in subparagraph (B)--
(I) by striking ``the presiding''
and inserting ``(i) in the case of a
referral to a presiding officer
described in subparagraph (A) or (B) of
section 3801(a)(7), the presiding'';
(II) in clause (i), as so
designated, by striking the period at
the end and inserting ``; or''; and
(III) by adding at the end the
following:
``(ii) in the case of a referral to a presiding
officer described in subparagraph (C) of section
3801(a)(7)--
``(I) the reviewing official shall submit a
copy of the notice required by under paragraph
(1) and of the response of the person receiving
such notice requesting a hearing--
``(aa) to the board of contract
appeals that has jurisdiction over
matters arising from the agency of the
reviewing official pursuant to section
7105(e)(1) of title 41; or
``(bb) if the Chair of the board of
contract appeals declines to accept the
referral, to any other board of
contract appeals; and
``(II) the reviewing official shall
simultaneously mail, by registered or certified
mail, or shall deliver, notice to the person
alleged to be liable under section 3802 that
the referral has been made to an agency board
of contract appeals with an explanation as to
where the person may obtain the relevant rules
of procedure promulgated by the board; and'';
and
(iii) by adding at the end the following:
``(C) in the case of a hearing conducted by a presiding
officer described in subparagraph (C) of section 3801(a)(7)--
``(i) the presiding officer shall conduct the
hearing according to the rules and procedures
promulgated by the board of contract appeals; and
``(ii) the hearing shall not be subject to the
provisions in subsection (g)(2), (h), or (i).''.
(2) Agency boards.--Section 7105(e) of title 41, United
States Code, is amended--
(A) in paragraph (1), by adding at the end the
following:
``(E) Administrative false claims act.--
``(i) In general.--The boards described in
subparagraphs (B), (C), and (D) shall have
jurisdiction to hear any case referred to a
board of contract appeals under section 3803(d)
of title 31.
``(ii) Declining referral.--If the Chair of
a board described in subparagraph (B), (C), or
(D) determines that accepting a case under
clause (i) would prevent adequate consideration
of other cases being handled by the board, the
Chair may decline to accept the referral.'';
and
(B) in paragraph (2), by inserting ``or, in the
event that a case is filed under chapter 38 of title
31, any relief that would be available to a litigant
under that chapter'' before the period at the end.
(3) Regulations.--Not later than 180 days after the date of
enactment of this Act, each authority head, as defined in
section 3801 of title 31, United States Code, and each board of
contract appeals of a board described in subparagraph (B), (C),
or (D) of section 7105(e) of title 41, United States Code,
shall amend procedures regarding proceedings as necessary to
implement the amendments made by this subsection.
(h) Revision of Limitations.--Section 3808 of title 31, United
States Code, is amended by striking subsection (a) and inserting the
following:
``(a) A notice to the person alleged to be liable with respect to a
claim or statement shall be mailed or delivered in accordance with
section 3803(d)(1) not later than the later of--
``(1) 6 years after the date on which the violation of
section 3802 is committed; or
``(2) 3 years after the date on which facts material to the
action are known or reasonably should have been known by the
authority head, but in no event more than 10 years after the
date on which the violation is committed.''.
(i) Definitions.--Section 3801 of title 31, United States Code, is
amended--
(1) in subsection (a)--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting a semicolon; and
(C) by adding at the end the following:
``(10) `material' has the meaning given the term in section
3729(b) of this title; and
``(11) `obligation' has the meaning given the term in
section 3729(b) of this title.''; and
(2) by adding at the end the following:
``(d) For purposes of subsection (a)(10), materiality shall be
determined in the same manner as under section 3729 of this title.''.
(j) Promulgation of Regulations.--Not later than 180 days after the
date of enactment of this Act, each authority head, as defined in
section 3801 of title 31, United States Code, shall--
(1) promulgate regulations and procedures to carry out this
Act and the amendments made by this Act; and
(2) review and update existing regulations and procedures
of the authority to ensure compliance with this Act and the
amendments made by this Act.
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